Historic Home

[Virgil Brown]

We have been asked to appraise a local home that is being donated to the local Historical Society. A previous MAI told the Historical Society that he could not do it because it requires a special certification. The only reason it is historical is the age 1727, George never slept there. Do you know anyting about a requirement for historical certification.

 

[Ray Miller]

We have been asked to appraise a local home that is being donated to the local Historical Society. A previous MAI told the Historical Society that he could not do it because it requires a special certification. The only reason it is historical is the age 1727, George never slept there. Do you know anyting about a requirement for historical certification.

Never, I have done several, about one a year. You do need to be working with a CG or MAI. These can be very complex appraisals to do. Scope of Work should be very detailed as to the use.

 

[Elliott]

I always hate it when somebody says an appraiser said something.
And its worse when they attribute it to an MAI. I run into
National Registry homes frequently. I always caution my
client that I'm not the 'warmest and fuzziest' historic home
appraiser. I'm sure some people are very proud of their
ancestors and historic homes have unique charm, but they
aren't the most functional homes around today and they
can be a maintenance nightmare.

I think if you use some 100+ year old houses, you'll have a
pretty good idea what the magical value is that buyers and
sellers attribute to 'historic' homes. Do a good job and
charge more than you usually do (that is the key that they
are getting a 'historic' home appraisal).

 

[DWiley]

The AI has a seminar on the appraisal of historic and high value homes. There is also an excellent book on the topic.

http://appraisalinstitute.org/store...s-preservation-and-the-valuation-process.aspx

I am not aware of any special certification in historic home appraisal.

If you accept the assignment, here is a tip. The National Register of Historic Places is accessible and searchable online. You can often get some good scoop about the subject/comps there.

Best Wishes

DW

 

[Charles Knutson]

In my experience, there are no specific value considerations for historic properties and homes listed on the National Register -- other than the intangible amenity value.

Appraise it for fair market value, using the best older comps you can find. Niether historic designation nor "Washington slept here" has any value when the bulldozers show up, and it has very little (if any) market value for the typical buyer.

 

[Brad Ellis]

Virgil,

Competency. These can be very complicated.

Anyone in your area with experience in them that you could affiliate with?

Brad

 

[Michigan CG]

Virgil, contact Brian Kirksey from Michigan, I believe he specializes in them. You can PM him.

 

[Mike Boyd]

I have done a few over the years and, unless there is something other than AGE that the house has to offer, I have not found there to be any additional value because of it being on the Historic Registry. In some regions, certain neighborhoods are classified as historic. Location adjustments are often made when compared to run-of-the-mill neighborhoods. Now, if Ben Franklyn had sex with Tom Jefferson's mistress in one of them, THAT would be historic and equal to a year's worth of ******! Maybe more depending on frequency. But, you would have to have proof.

 

[Annelle]

Is there anything like a "Mills Act", such as in California?

In brief, it is a preservation based tax incentive in exchange for a contract to maintain the property.

http://www.boe.ca.gov/proptaxes/faqs/faqs_mills_act.htm#3

I have not found significant value in Historic homes or Churches, except in cases like Craftsman homes in So Cal (I can only speak of my experience), or by specific architects... There can be a dramatic difference in market reaction for those homes.

 

[Mike Garrett RAA]

Complex appraisal assignment...to say the least.